When a US Company Owns a Foreign Subsidiary, a Foreign-Currency Translation Adjustment

question 121

True/False

When a U.S. company owns a foreign subsidiary, a foreign-currency translation adjustment is calculated using the subsidiary's balance sheet.

---

Definitions:

Principal

A person who authorizes an agent to act on her or his behalf and subject to her or his control.

Independent Contractor

An individual who provides goods or services to another entity under terms specified in a contract or within a freelance arrangement, not as an employee.

Expressly Authorized

Granted clear and definite permission or authority to do something, usually in a specific manner.

Master

An outdated term signifying an individual who has the right to control the physical conduct of a servant or employee.